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Oil Advances on Concerns Over Iran

Crude oil gained today on concerns about supply from Iran. The exports from Iran, the second biggest producer in OPEC, may be disrupted as the United States is going to implement additional sanctions against the country. The speculation that the US inventories continued to decline bolstered crude further.

Earlier, oil declined as Kim Jong Il, the leader of North Korea, died, causing worries that a possible internal power-struggle may lead to deteriorating relationship with South Korea. The continuing problems in Europe also damp demand for oil.

January contract for crude for delivery (which expires today) rose $0.7 to $94.58 per barrel in electronic trading on NYMEX. February futures for Brent oil advanced $0.4 (0.4 percent) to $104.04 per barrel on ICE.
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